The 24-year-old suspect is alleged to have murdered a 51-year-old man who was found dead in a house in Broad Lane, Bloxwich, at about 10.15am on Monday.
The incident is believed to be "domestic-related," police said.
The suspect - understood to be known to the deceased - was arrested in the Bloxwich area on Monday night on suspicion of murder and remained in custody for questioning on Tuesday morning.
He was detained hours after the alleged murder victim was found by police when neighbours raised the alarm on Monday morning.
A forensic post mortem will take place in due course to establish the cause of death, West Midlands Police said.
The house, which is around 150 metres away from the junction with the A4124 and the Sir Robert Peel pub, was sealed off as forensic investigators examined the scene throughout Monday.
A neighbour, who asked not to be named, said: "It's really sad as we spoke on a number of occasions and I knew what he did for a job so I'm surprised to find out what happened to him."
Another neighbour added: "I'd met him a few times when we were drinking in the Robert Peel pub, so I'm really sad to find out that he's died.
"It's also a bit of a shock to see all this police out here."
Detective Inspector Laura Harrison, from West Midlands Police's homicide unit, said: "This is now an active murder investigation and we're working to establish the full circumstances of how this man sadly died.
"Following our initial enquiries we detained a man on suspicion of murder in the Bloxwich area last night and at this stage we believe this is domestic-related.
“Our enquiries are ongoing and I'd urge anyone with information to contact us as soon as possible."
Anyone with information is asked to contact police online or by calling 101, quoting log 1125 from 24 May.
Alternatively, contact Crimestoppers anonymously on 0800 555111 or at crimestoppers-uk.org